JLFISHER LTD

Executive Summary

JLFisher Ltd's recent financials show negative net assets and increasing liabilities, indicating weak financial strength and liquidity concerns. The company’s ability to service debt is doubtful under current conditions. Close monitoring of cash flow and debt levels is advised before considering any credit extension.

JLFISHER LTD - Analysis Report

Company Number: 13119245

Analysis Date: 2025-07-20 14:11 UTC

1. Credit Opinion: DECLINE
   JLFisher Ltd demonstrates concerning financial trends that weaken its creditworthiness. The company's net assets turned negative in the most recent year (2024), dropping from a positive £1,251 to a deficit of £7,088. Additionally, it holds significant long-term liabilities (£120k) exceeding total assets less current liabilities, indicating over-leverage. The negative net current assets of approximately £51k further reflect liquidity issues. Given these factors, the company currently lacks the financial robustness to reliably service additional debt without significant risk.

2. Financial Strength:
   The balance sheet shows growth in fixed assets from ~£74.5k (2023) to £164k (2024), which may indicate asset acquisition or investment; however, this is funded largely through increased liabilities. Current assets remain static at £28.7k, while current liabilities more than doubled from about £47k to £80k, worsening working capital. The substantial rise in creditors falling due after more than one year from ~£55k to £120k underscores increased long-term debt exposure. Overall, shareholders’ funds have deteriorated, reflecting accumulated losses or increased debt financing.

3. Cash Flow Assessment:
   The company has negative net current assets (working capital deficit) that worsened by over £30k in the last year, suggesting strained liquidity and potential difficulties meeting short-term obligations. The static current assets figure implies limited cash or receivables growth to support operations. Without further cash flow data, the working capital position and increased liabilities point to weak operational cash flow and possible reliance on external financing or owner funding to maintain solvency.

4. Monitoring Points:

• Continued deterioration of net assets and working capital
• Ability to service and reduce long-term liabilities
• Management’s strategy to improve liquidity and profitability
• Cash flow generation from operations, particularly rental income given SIC code 68209
• Timely filing of future accounts and confirmation statements to ensure transparency

Executive Summary:
JLFisher Ltd exhibits significant financial stress with increasing debt and negative net assets, raising concerns over its capacity to meet debt obligations. Liquidity pressures are evident with worsening working capital deficits. Without a clear turnaround in financial management or operational cash flow improvement, the company poses elevated credit risk.